What are meme coins?
Meme coins are cryptocurrencies inspired by internet jokes, memes, and culture, created to be light-hearted and fun. Unlike projects with groundbreaking technology, meme coins attract users with the promise of vibrant, engaging communities.
Well-known examples include Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE), which have gained massive followings. While these meme coins have delivered big returns during market pumps, they are risky investments that often lack significant utility compared to projects like Ethereum or Solana and are less established than cryptocurrencies like Bitcoin.
Why are meme coins popular?
Memecoins have exploded in popularity recently, driven by high-profile endorsements and their strong ties to internet communities and culture.
Musk and the D.O.G.E.
DOGE was hyped to new levels following Elon Musk’s appointment to the Department of Governmental Efficiency (D.O.G.E.). This news has sent DOGE prices soaring by 290% over a three-month period. However, DOGE remains a pretty hype-dependent asset and continues to have some pretty wild swings. We’ve included a price chart below for the last three years (as of 27 February 2025).
Goatseus Maximus (GOAT)
Another recent standout is Goatseus Maximus (GOAT)—an AI-inspired meme coin.
Truth Terminal, the AI chatbot promoting the joke religion “Goatse Gospel,” gained attention after Marc Andreessen (co-founder of a16z) donated roughly $76,00 in Bitcoin in July 2024 to see what it would do. This triggered the minting of GOAT on the Solana blockchain, which quickly briefly exploded to over $700 million in market capitalisation. While Truth Terminal doesn’t directly trade or create tokens, its creator, Andy Ayrey, describes it as an experiment in meme-driven AI.
Are meme coins becoming… useful?
While most meme coins are purely speculative, some are starting to develop real-world uses. For example, Shiba Inu is developing the Shibaverse, a metaverse for its community. It’s also developing ShibaSwap, a decentralised exchange (DEX) for swapping tokens. This move towards utility signals a shift in how meme coins could be used in the future.
Staying safe when buying meme coins
While some meme coins sure do blow up, nearly 13 million were created in 2024 alone, or 40,000 and 50,000 a day! Most of these don’t go anywhere and serve no real value outside of, well, memes. This is one of the reasons that we at bitcoin.com.au only list meme coins that have had time to prove themselves.
Aside from the high chance that most meme coins will never reach much value as an investment, other risks include airdrop scams (fake promises of free tokens in exchange for personal information or small fees), rug pulls (dodgy developers pull all the money from the coin, leaving it worthless) and pump-and-dump (traders artificially boost the price as early investors then get out before it crashes).
Hawk Tuah coin, created by influencer and podcast host Haliey “Hawk Tuah Girl”, is one of countless examples of how volatile the meme coin space can be. Launched on Dec. 4, the meme coin quickly soared to a market value of $760 million. Hours later, it crashed, losing 95% of its value at the time of writing.
How to spot legit meme coins
If you’re considering buying meme coins, it’s important to research the team – look for transparency about who’s behind the project. You should also check the community because an active, engaged community is vital for the long-term life of a meme coin. Finally, it’s essential to consider how concentrated a meme coin is and avoid coins held by only a few people or entities.
The bottom line
Meme coins started as lighthearted, humorous additions to the crypto space, fuelled by internet culture and community vibes. Coins like Dogecoin and Shiba Inu have since evolved into major market forces, showing just how powerful social media and collective sentiment can be in driving financial trends. But most new meme coins are especially risky. Always do your own research.
Getting started with meme coins
Create a free account to buy or sell meme coins and other crypto. Once you’ve purchased your first crypto, bitcoin.com.au automatically creates a secure wallet in which you can store your crypto. Hardware wallets are also a great option for long-term storage.
